<\/p>\n
Boaz Weinstein runs Saba<\/p>\n
An Edinburgh investment trust has accused its US pursuer of \u201ccynically\u201d rejecting an offer to shareholders despite indicating it would recommend the proposal.<\/p>\n
At a general meeting on Friday, the board of Edinburgh Worldwide Investment Trust failed to win sufficient support from shareholders for a tender offer. <\/p>\n
It was the latest attempt to halt attempts by Boaz Weinstein\u2019s New York hedge fund Saba Capital Management to oust the directors and install its own nominees.<\/p>\n
Despite overwhelming opposition to two previous Saba approaches, only 46.2% of shares were voted in support of the tender offer with 53.8% against. <\/p>\n
The trust declared that the votes against the proposal were \u201calmost entirely by Saba and two other institutions\u201d. <\/p>\n
Trust chairman Jonathan Simpson-Dent accused Saba, which owns about 30%, of behaving cynically as it had not engaged with the other shareholders.<\/p>\n
The tender offer would have enabled shareholders to cash out at close to fair value and retain access to the potential future value from its stake in Elon Musk\u2019s SpaceX.<\/p>\n
Cash would have been returned in early May, while trust manager Baillie Gifford would have sold EWIT\u2019s shares in SpaceX whenever possible. Of EWIT\u2019s \u00a3728m of assets under management, SpaceX accounts for 16.3%.<\/p>\n
After the vote, Mr Simpson-Dent admitted there is an increased likelihood of Saba seizing control at the company\u2019s AGM on 30 April.<\/p>\n
Saba said: \u201cWe thank our fellow shareholders for their support in rejecting the EWI board\u2019s deeply flawed tender proposal, which would have forced shareholders into untradeable SpaceX tracker shares while exposing them to significant potential tax liabilities.<\/p>\n
Jonathan Simpson-Dent accused Saba of cynicism (pic: DB Media Service)<\/p>\n
\u201cThe board\u2019s failure to put forward a well-thought-out tender that the majority of shareholders are willing to support makes it clear that chair Jonathan Simpson-Dent and his fellow directors are completely out of touch with their own shareholders.<\/p>\n
\u201cOver the past five years, EWI\u2019s performance has been unacceptable by any objective measure \u2013 ranking 66th out of 66 equity trusts with more than \u00a3500 million in assets. <\/p>\n
\u201cYet instead of taking responsibility for the company\u2019s last-place performance, the board continues to pursue actions that maintain the status quo and prioritise the incumbent directors\u2019 self-interests at the expense of shareholders\u2019 financial interests.\u201d<\/p>\n
EWIT hit back by accusing Saba of failing to support the tender offer, despite having indicated less than two weeks ago that it would recommend this same proposal.<\/p>\n
Mr Simpson-Dent said: \u201cIt is extraordinary that Saba has now chosen to block its own proposal which it claims it is still endorsing. <\/p>\n
\u201cThis complete contradiction lays bare the fact that Saba cannot be trusted to follow through on its own commitments, even where those commitments were made publicly to shareholders.<\/p>\n
\u201cSaba has cynically claimed the board is out of touch with shareholders, yet Saba has never taken the time to engage with retail shareholders or the majority of institutional shareholders, despite repeated invitations. <\/p>\n
\u201cA significant number of shareholders have once again expressed their desire not to be in a Saba-controlled vehicle. \u00a0<\/p>\n
\u201cSaba\u2019s actions are not about improving outcomes for all shareholders; they are about control. Saba\u2019s announcement today makes that unequivocally clear. If its nominees were appointed, there can be no confidence that any stated intentions would be honoured.<\/p>\n
\u201cShareholders now face a clear choice: protect the company\u2019s independence and long-term strategy, or risk handing control to a party whose actions have demonstrated inconsistency, opportunism and disregard for shareholder clarity.<\/p>\n
\u201cWe urge all shareholders to act and vote in record numbers. Vote for the board\u2019s resolutions and vote decisively against Saba\u2019s attempt to take control of your company.\u201d<\/p>\n
\t #EWIT #Saba #swap #angry #insults #bitter #feud #Daily #Business<\/p>\n","protected":false},"excerpt":{"rendered":"
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